The debt solutions provider said a rise in renters losing their homes would push up rental charges at a time when rising day to day living costs are already driving families into debt.
The International Monetary Fund announced recently that families could be £1,500 worse off over the next five years, and the British economic recovery will be “bumpy and uneven”.
Meanwhile a recent report from The Association of Residential Lettings Agents found that there are currently more prospective tenants than properties available.
Kevin Still, director of Atlantic, said: “The stagnant property market is making renting the only option for a growing number of individuals and families, with little option but to pay the higher rents now being demanded.
“The average monthly rent in the UK rose to £867 in the second quarter of 2011 - its highest ever level. Not only is it harder to find a property, but demand has pushed up rent across the country and many existing tenants are struggling to pay.
“Rent increases are yet another financial burden for families at a time when living costs have already climbed steeply. As the tough times continue across the board, those already in financial difficulty will struggle most.
“It is now more important than ever to manage any existing debts effectively to avoid potentially serious knock-on effects such as the devastating possibility of being evicted from your home.”
“At Atlantic one of our priorities is to protect a client’s tenancy and ensure that a realistic repayment arrangement is negotiated to clear rent arrears as part of a holistic debt solution.
“Landlords and residential letting agents need to work with debt advisors to find the right debt solution for their tenants rather than just start proceedings to evict, which can be very expensive and reduce rental income.”
“As a result, we are able to get creditors to freeze interest and charges on the large majority of our clients’ credit agreements. And that is vital to stem the debt problems they are facing.”
